FxWirePro: USD/CAD trades lower on strong Canadian CPI data, good to sell on rallies

USD/CAD has formed almost a triple top around 1.31750 and shown a good decline from that level. The pair has lost more than 100 pips from the high after stronger than expected Canada CPI data. Canada’s monthly CPI came at 0.5% compared to forecast of 0.1%. the rise in inflation has increased the chance of rate hike by BOC.

The NAFTA agreement and trade war tensions between US and Canada is putting pressure on Canadian dollar prices.

WTI crude has shown a minor recovery of more than $1.5 from the low of $64.67. It hits high of $66.50 near to 7- day MA and started to decline from that level. The weak industrial by China and trade war between US and Turkey is putting pressure on oil.It is currently trading around $65.70.

On the higher side, near term resistance is around 1.3180 and any break above targets 1.3290/1.3380 level. The minor resistance is around 1.3130.

The near term support is around 1.3060 and any break below targets 1.3000/1.2960 (100- day MA).

It is good to sell on rallies around 1.3133-35 with SL around 1.3175 for the TP of 1.3000.